Note: When facing the left rear wheel, the star adjuster is approx. at the 4:00 o'clock position for an e32/e34. It is at about the 2:00 o'clock position for an e36.

http://www.nmia.com/~dgnrg/brakes1.jpg

For the left wheel, push the end of the handle sideways to the left (toward the center of the axle). This will rotate the adjuster wheel in the opposite direction and will expand the shoes toward the drum. May take 6 or 8 clicks if it's been awhile.

http://www.nmia.com/~dgnrg/brakes2.jpg

Turn the wheel periodically to tell when the shoes are making contact with the drum. When you think you have it, pull up on the handbrake to reset the shoes, and release the handbrake all the way. Turn the star wheel a few more clicks until it's firm. Back off in the opposite direction 2 clicks.

Repeat on other side. For the right wheel, the star wheel will be at approx. the 8:00 o'clock position for an e32/e34, 10:00 o'clock for an e36. Pry the screwdriver AWAY from the axle to expand the shoes. Adjust the firmness the same as for the left wheel.

When done with the wheel adjustment, tighten the handbrake cable adjuster nuts as evenly as possible until it takes 4 clicks of the handle ratchet to set the handbrakes. Some cables have a single nylon nut, others have a nut with a smaller jam nut.

The shoes may drag for a little bit but that should go away by itself. If they are too tight, loosen the star adjuster(s) another click or 2 or repeat the cable adjustment.